Breaking Down Tempest Therapeutics, Inc. (TPST) Financial Health: Key Insights for Investors

You're looking at Tempest Therapeutics, Inc. (TPST) and seeing a biotech at a true inflection point, a high-stakes pivot that demands a careful look beyond the clinical headlines. The immediate reality is a tight cash position, with the company ending the third quarter of 2025 with just $7.5 million in cash and cash equivalents, a sharp drop from $30.3 million at the start of the year, reflecting a year-to-date net loss of $22.2 million. But here's the critical shift: the recent all-stock deal to acquire dual-CAR T programs from Factor Bioscience, announced in November 2025, is a massive bet on pipeline expansion, though it comes with substantial shareholder dilution-issuing 8,268,495 shares, or 65% of the outstanding common stock, to a Factor affiliate. This move, plus a Factor investment commitment, is the lifeline, projected to extend the operational runway to mid-2027. So, the near-term risk of a cash crunch is temporarily mitigated, but the long-term opportunity now rests on successfully integrating and advancing the acquired TPST-2003 program alongside their existing amezalpat (TPST-1120) asset for first-line liver cancer.

Revenue Analysis

You're looking at Tempest Therapeutics, Inc. (TPST) and asking the right question: Where does the money come from? For a clinical-stage biotechnology company like Tempest, the short answer is: it doesn't come from selling products yet. This is a critical distinction for investors; your focus needs to be on their cash burn and financing, not traditional sales.

The hard truth for the 2025 fiscal year is that Tempest Therapeutics, Inc. is a pre-commercial entity. This means their primary revenue from product sales is $0. Wall Street analysts are aligned on this, with the consensus revenue forecast for the full year 2025 sitting at precisely $0. This isn't a failure; it's the standard operating model for a biotech focused on developing first-in-class targeted therapeutics like amezalpat (TPST-1120) and TPST-1495 to fight cancer.

Since there are no product sales, the traditional year-over-year revenue growth rate is effectively N/A or 0%. Any revenue recorded would typically stem from non-recurring events like collaboration agreements, grants, or interest income, but these are not the core business engine. The real financial story is in their funding activities, which are the lifeblood of a company at this stage.

Here's the quick math on how they are funding operations through Q3 2025:

• Net proceeds from June 2025 registered direct offering: $4.1 million.
• Net proceeds from at-the-market (ATM) offering program: $2.8 million.
• Cash and equivalents at September 30, 2025: $7.5 million.

This is the capital that funds their research and development (R&D) and general and administrative (G&A) expenses, not a revenue stream from selling a drug. The $7.5 million cash balance at September 30, 2025, is down significantly from $30.3 million at the end of 2024, showing the cash burn is real.

The most significant change in their financial stream in 2025 is the strategic shift to conserve capital. The company is actively pursuing a 'strategic alternatives process' to maximize stockholder value. This reprioritization led to a sharp drop in R&D expenses for Q3 2025, falling to just $0.6 million compared to $7.6 million in the same quarter of 2024. That's a $7.0 million reduction, a clear sign they are tightly managing the runway while seeking a partner or a sale. You need to understand this capital structure before you dive into Exploring Tempest Therapeutics, Inc. (TPST) Investor Profile: Who's Buying and Why?

To be fair, this zero-revenue model will only change if one of their clinical candidates, like amezalpat, successfully navigates the regulatory gauntlet and hits the market, or if they secure a major licensing deal. Until then, their financial health is a function of their burn rate and their ability to raise capital, not their sales figures.

Profitability Metrics

You're looking at Tempest Therapeutics, Inc. (TPST) and the first thing to understand is that for a clinical-stage biotechnology company, profitability metrics look very different than for, say, a mature software firm. They're pre-revenue, so the traditional profit margins are non-existent; you're really analyzing the burn rate and cost control.

For the 2025 fiscal year, analysts forecast Tempest Therapeutics, Inc.'s revenue to be $0. This means the Gross Profit and Gross Profit Margin are also $0 and 0%, respectively. That's not a sign of poor performance; it's the nature of the business model. They are investing heavily in Research and Development (R&D) to bring their lead candidate, amezalpat, to a pivotal Phase 3 trial.

The real story is in the losses, which are improving. For the nine months ended September 30, 2025, the company reported an Operating Loss of $22.5 million and a Net Loss of $22.2 million. This is a significant improvement from the same period in 2024, when the Operating Loss was $28.1 million and the Net Loss was $28.0 million. That's a 20% reduction in operating loss year-over-year. That's smart, focused cost management.

Here's the quick math on the near-term trend, which is defintely a positive signal for operational efficiency:

Operational Efficiency and Industry Context

The improvement is driven by a sharp reduction in operating expenses, specifically R&D. In the third quarter of 2025, R&D expenses dropped to just $0.6 million, a massive decrease from the $7.6 million spent in the same quarter of 2024. This $7.0 million decrease was a direct result of re-prioritizing efforts toward exploring strategic alternatives, which is a clear, decisive action to preserve capital.

When you compare this to the broader US Biotechnology industry, you see the context. The industry average forecast earnings growth rate is around 47.28%, but that's an average that includes companies with approved products. For clinical-stage firms, negative margins are the norm due to the heavy R&D investment. For example, a product-stage peer like Krystal Biotech, which is revenue-generating, boasts a gross profit margin of 94.26%. Tempest Therapeutics, Inc. isn't there yet, so the focus must be on managing the cash runway.

The key takeaway for investors is that while the company is losing money (forecast to be a net loss of approximately $36.1 million for the full year 2025), the rate of loss is decreasing due to management's strategic cost controls. This is how a clinical-stage biotech extends its cash runway while pursuing a strategic alternative process to maximize stockholder value.

• Gross Margin: 0% (pre-revenue status is the reason).
• Net Loss Trend: Improving, down 21% year-to-date 2025.
• Cost Control: R&D cut by $7.0 million in Q3 2025.

To dig deeper into the company's strategic moves and valuation, you should read the full post: Breaking Down Tempest Therapeutics, Inc. (TPST) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You're looking at Tempest Therapeutics, Inc. (TPST) and trying to figure out how they fund their critical drug development, and the answer is clear: they are defintely leaning on equity, not debt. In the high-stakes biotech world, a low debt load is often a sign of prudent risk management, and Tempest has essentially zeroed out its interest-bearing debt.

As of the most recent data, Tempest Therapeutics, Inc. reports $0.0 in total debt, which translates to a Debt-to-Equity (D/E) ratio of 0%. This is a significant finding, especially when you compare it to the broader Biotechnology industry, where the average D/E ratio is around 0.17 as of November 2025. A D/E of zero means the company is not using borrowed money to finance its assets; it's all funded by shareholder capital (equity) and current liabilities.

Here's the quick math on their recent capital moves: the company actively chose to reduce its debt burden earlier this year. In April 2025, Tempest Therapeutics, Inc. fully repaid a $3.5 million loan from Oxford Finance LLC, removing that obligation from the balance sheet. This move signals a clear strategy to maintain a clean capital structure, which is smart when you are a clinical-stage company with volatile cash flows.

The company's growth and operations are overwhelmingly funded through equity. This strategy is typical for a clinical-stage biotech that needs cash but wants to avoid the fixed interest payments and covenants that come with debt, especially given their Q3 2025 net loss of $3.5 million.

Their recent financing activities in 2025 underscore this equity-first approach:

• Registered Direct Offering: Net proceeds of $4.1 million in June 2025.
• At-The-Market (ATM) Program: Net proceeds of $2.8 million.
• Strategic Acquisition: A November 2025 acquisition of new CAR-T programs was structured as an all-stock transaction.

This reliance on equity means investors must focus less on credit risk and more on dilution risk and the clinical pipeline's success. The balance sheet as of September 30, 2025, shows a cash and equivalents balance of $7.5 million, down from $30.3 million at the end of 2024, highlighting the constant need for new capital to fund R&D. You can read more about what drives their funding needs here: Mission Statement, Vision, & Core Values of Tempest Therapeutics, Inc. (TPST).

What this balance sheet tells me is that the company is essentially a pure-play equity bet. They've consciously avoided the leverage game, which keeps the risk profile tied directly to their clinical trial milestones, not their ability to service a loan. The table below summarizes the key components of their capital structure for a quick comparison.

The clear action for investors is to track the pace of their cash burn against their equity raises, as they have no debt cushion to fall back on. Finance: monitor the next equity raise announcement closely.

Liquidity and Solvency

You need to know if Tempest Therapeutics, Inc. (TPST) has enough cash to keep the lights on and fund its drug development pipeline, which is the core question for any clinical-stage biotech. The short answer is that while the operating burn rate is high, recent financing has bought them critical time, pushing the cash runway out to mid-2027.

The company's liquidity position, as of September 30, 2025, looks adequate on paper, but the underlying trend shows significant cash usage. Both the Current Ratio and the Quick Ratio stood at approximately 2.30. A ratio above 1.0 means current assets exceed current liabilities, which is good, but for a development-stage company, this ratio is less important than its cash burn rate.

Here's the quick math on the short-term position, using figures from the Q3 2025 balance sheet (in thousands):

Working capital-the difference between current assets and current liabilities-was a positive $4.579 million at the end of Q3 2025. This is a solid buffer, but you must look at the trend. The cash and cash equivalents balance plummeted from $30.3 million at the end of 2024 to just $7.5 million by September 30, 2025, a clear sign of the high cash-intensive nature of biotech R&D.

Looking at the cash flow statement overview, the operating cash flow is the biggest concern. Cash used in operating activities for the nine months ended September 30, 2025, was a substantial $23.2 million. This is the core 'burn' rate, funding research and development (R&D) and general administrative costs. To be fair, R&D expenses for the quarter dropped significantly to $0.6 million, down from $7.6 million in the same period in 2024, due to a strategic reprioritization towards exploring strategic alternatives. That's a defintely necessary cost-cutting measure.

The financing cash flow, however, provided a crucial offset. The company raised $4.1 million in net proceeds from a June 2025 registered direct offering, plus another $2.8 million from its at-the-market (ATM) program during the period. This influx of capital is what keeps the company solvent. Cash from investing activities is typically minimal for a company like this, mainly covering capital expenditures for equipment or facilities.

The key liquidity strength right now isn't the ratio, but the runway extension. The recent strategic move, including an acquisition and associated financial commitment from Factor Bioscience, is anticipated to fund operations until mid-2027. This buys management time to hit key clinical milestones for programs like TPST-1495 Phase 2. The primary risk remains the high cash burn rate of a clinical-stage company, which means future financing-likely dilutive equity raises-will be necessary as that 2027 deadline approaches. You can learn more about the company's direction here: Mission Statement, Vision, & Core Values of Tempest Therapeutics, Inc. (TPST).

Valuation Analysis

You need to know if Tempest Therapeutics, Inc. (TPST) is a bargain or a trap, and the short answer is that traditional valuation metrics are largely unhelpful right now. This is a clinical-stage biotech, so its value is tied to pipeline success, not current earnings. Still, the numbers tell a story of high risk but massive potential upside, a classic biotech setup.

Looking at the core ratios for the 2025 fiscal year, we see the expected volatility. The Price-to-Earnings (P/E) ratio is a negative -0.1991 (Trailing Twelve Months as of October 2025). Here's the quick math: negative P/E simply means the company is losing money, which is defintely the norm for a company focused on drug development with no significant product revenue yet. You should focus less on the absolute P/E and more on the cash burn rate, which is the real near-term risk.

The Price-to-Book (P/B) ratio, however, gives us a concrete anchor at 3.32. This tells you that the market is valuing the company at more than three times its net tangible assets. Investors are clearly paying for the pipeline-specifically the potential of amezalpat and TPST-1495-not the balance sheet. For a company with an Enterprise Value (EV) of only around $21.98 million, this P/B multiple is a signal of high expectations for future clinical trial results. The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is not applicable (n/a), because the company has negative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

• P/E Ratio (TTM Oct 2025): -0.1991 (Indicates losses)
• P/B Ratio (2025 FY): 3.32 (Market values pipeline over assets)
• Dividend Yield: 0% (No dividend, typical for growth-stage biotech)

The stock price trend over the last 12 months has been brutal. Tempest Therapeutics, Inc. (TPST) saw a price decrease of -56.91% in the 52 weeks leading up to November 2025. The 52-week high was $13.65, but the stock closed recently at a low of $3.50 on November 21, 2025. This volatility includes a reverse stock split in April 2025, which is a key event that often precedes further price pressure. Your investment decision must account for this extreme price sensitivity.

Wall Street analysts are split, which is why the consensus is a cautious 'Reduce' or 'Hold' rating from the three analysts covering the stock. Still, the average 12-month price target is a compelling $12.50. This figure represents a massive forecasted upside of 257.14% from the current $3.50 price, with targets ranging from a low of $9.00 to a high of $16.00. This wide spread shows the binary nature of biotech investing: if the clinical data is good, the stock rockets; if it fails, it collapses. You can explore the institutional interest driving this volatility in Exploring Tempest Therapeutics, Inc. (TPST) Investor Profile: Who's Buying and Why?

The concrete next step is to track the next clinical trial readout for their lead candidates, as that event will be the true catalyst, dwarfing any current valuation metric. Finance: Set a calendar alert for the next major Phase 2/3 data release within the next six months.

Risk Factors

You need to look past the promising clinical data for Tempest Therapeutics, Inc. (TPST) and focus on the cold, hard financial reality. The biggest near-term risk is the company's financial runway and its classification as a distressed stock, which forces immediate, critical decisions about capital allocation.

The core of the challenge is that Tempest Therapeutics, Inc. is a clinical-stage biotech with zero revenue, meaning its survival is entirely dependent on its cash reserves and ability to raise capital. As of September 30, 2025, the company reported cash and cash equivalents of only $7.5 million, a sharp drop from $30.3 million at the end of 2024. This rapid burn rate is why the company has explicitly stated a risk relating to its ability to continue to operate as a going concern in its recent filings.

Here's the quick math: The year-to-date net loss through September 30, 2025, was $22.2 million, averaging about $7.4 million per quarter before significant cost-cutting. That pace is unsustainable with the current cash balance.

Operational and Strategic Risks

The company's strategic risks are directly tied to its financial distress. The management team is actively exploring a strategic alternatives process to maximize shareholder value, which is corporate-speak for seeking a merger, acquisition, or a significant licensing deal. This is a high-stakes bet, and the risk is that any such transaction, if pursued, may not be completed on attractive terms or at all.

Operational risks are also high, as is typical in the biotechnology sector. The success of its lead candidates, like amezalpat (TPST-1120), hinges on positive clinical trial results, which always carry the risk of unexpected safety or efficacy data. Plus, the process of activating clinical trial sites or enrolling patients can be slower than expected, delaying potential milestones and burning more cash. To be fair, the company's high volatility (57.64) and inverse beta of -7.42 suggest unique, non-market-correlated risks, typical of a binary-event-driven biotech stock.

• Regulatory Hurdles: Changes in the regulatory environment or unexpected FDA/EMA decisions.
• Competition: New or existing competitors could diminish the market opportunity for their pipeline.
• Capital Markets Volatility: Uncertainty in the capital markets for biotechnology companies makes future fundraising difficult.

Mitigation and Runway Extension

Tempest Therapeutics, Inc. has taken clear, albeit drastic, actions to mitigate these risks. The most significant move was the strategic acquisition of dual-targeting CAR-T programs from Factor Bioscience in November 2025. This all-stock deal came with a critical benefit: a financial commitment from Factor that is projected to extend the company's operational runway until mid-2027.

This extension buys them time, but it's defintely not a permanent fix. Other mitigation efforts include:

• Cost-Cutting: Research and development (R&D) expenses were aggressively cut to $0.6 million in Q3 2025, down from $7.6 million in the same period of 2024, by re-prioritizing efforts toward the strategic alternatives process.
• Dilutive Financing: The company raised capital through stock offerings, including $4.1 million in net proceeds from a June 2025 registered direct offering and $2.8 million from an at-the-market (ATM) program.

The Factor deal is a lifeline, but the clock is still ticking toward mid-2027. Your next step should be to closely monitor the progress of the strategic alternatives process and the clinical milestones for TPST-1495, which is expected to start its Phase 2 trial in collaboration with the NCI. For a deeper dive into who is betting on this turnaround, you should read Exploring Tempest Therapeutics, Inc. (TPST) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking at Tempest Therapeutics, Inc. (TPST) and trying to map the future, which is smart because this is a clinical-stage biotech. Right now, the company doesn't generate product revenue, so the value is entirely in the pipeline and the strategic moves they're making to fund it. The near-term growth story is a classic biotech pivot: diversify the pipeline and extend the cash runway.

The core of their future growth is a two-pronged approach: advancing their small molecule programs and aggressively entering the cell therapy space. Honestly, the recent acquisition is the defintely the most significant development for their competitive positioning.

Strategic Pipeline Expansion and Financial Runway

The biggest news, announced on November 19, 2025, is the all-stock acquisition of dual-targeting Chimeric Antigen Receptor (CAR)-T programs from Factor Bioscience. This move is a lifeline and a growth driver wrapped into one. By issuing 8,268,495 new shares, which represents about 65% of the outstanding common stock, they gain a new clinical-stage asset, TPST-2003.

More importantly, the deal, which is expected to close in early 2026, includes an investment commitment from Factor Bioscience that is projected to extend Tempest Therapeutics' financial runway to mid-2027. This is crucial because it buys time to hit key clinical milestones. For a company that reported just $7.5 million in cash and cash equivalents at the end of Q3 2025, extending the runway by nearly two years is a massive de-risking event.

• Diversify pipeline with TPST-2003, a dual CD19/BCMA CAR-T program.
• Extend cash runway to mid-2027 via Factor Bioscience investment.
• Plan to pursue partnerships for amezalpat (TPST-1120) pivotal development.

Key Product Innovations and Competitive Advantages

The company's competitive edge rests on two novel mechanisms of action. First, their lead candidate, amezalpat (TPST-1120), a PPAR⍺ antagonist, is Phase 3-ready for first-line hepatocellular carcinoma (HCC), or liver cancer. The drug has already received Orphan Drug and Fast Track designations from the FDA and EMA. Positive Phase 2 data showed amezalpat, when combined with standard-of-care therapy, extended median overall survival by an additional six months, which is a significant clinical advantage in a high-unmet-need area.

Second, the newly acquired TPST-2003, a dual-CAR T program, strengthens their portfolio in the highly competitive CAR T-cell therapy field. This dual-targeting approach is designed to improve efficacy over single-target CAR-Ts, potentially offering a better solution for patients with relapsed multiple myeloma (rrMM). This is a clear attempt to leapfrog competitors by focusing on next-generation cell therapy. For a deeper look at the company's long-term vision, you can check their Mission Statement, Vision, & Core Values of Tempest Therapeutics, Inc. (TPST).

2025 Financial Projections and Earnings Estimates

As a clinical-stage company, Tempest Therapeutics is not expected to generate any product revenue in the 2025 fiscal year. Here's the quick math on the financial outlook: all eyes are on cash burn and clinical progress, not sales. The consensus among Wall Street analysts reflects this pre-revenue stage, projecting a significant net loss.

The average analyst forecast for Tempest Therapeutics' revenue for the 2025 fiscal year is $0. The focus remains on managing the cash burn, which has been substantial-the negative EBITDA for the last twelve months stands at $36.17 million.

What this estimate hides is the potential for a massive upside if amezalpat's Phase 3 trial is successful or if the new CAR-T programs hit a key data readout in 2026. Still, the current financial reality is one of high cash burn and zero revenue. The next step is clear: Finance needs to track the burn rate against the mid-2027 runway and the milestones for TPST-1120 and TPST-2003.